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Reinvestment Rate
What Does Reinvestment Rate Mean? The rate at which cash flows from fixed-income securities may be reinvested.
Investopedia explains Reinvestment Rate Because of the additional interest income, bondholders can make larger investment returns if they reinvest received coupon payments.
Related Links
- Bond Basics Tutorial - Investing in bonds - What are they, and do they belong in your portfolio?
- The Money Market - If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
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